B.A.(Rhodes), B.A.Hons.(U.C.T.), M.A.(Northwestern, Chicago), M.B.A.(Wits) Deon Opperman is an established South African playwright and commentator who writes in both Afrikaans and English. Twitter: @deonopperman6

Deon Opperman

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Sunday, 14 April 2013

5 STEPS FOR THE BITCOIN BEGINNER

STEP 1: Get to understand the macroeconomic realities of
the world you are living in. Decide whether you feel comfortable with where
things are headed. Bitcoin may turn out to be a place where, in the event of a very severe world depression, hyper inflation and the hardcore depreciation of paper money worldwide, you could safeguard some purchasing power. But remember: Bitcoin is new, uncertain, volatile, high risk. I recommend you have this attitude: "I'm going to put some cash that I can afford to lose in bitcoin as a backup plan that might work in the event of world economic collapse." I am of the view that the global economy is going to get much, much worse before it gets better.

STEP 2: Go online
and do some proper research so that you have a good idea what Bitcoin is
all about.

STEP 3: Decide
whether you think Bitcoin is the madness of crowds or the wisdom of crowds. If you think it is wisdom…see STEP 4:

STEP 4: Set aside
an amount of cash that you are willing to put at risk because Bitcoin is relatively new technology. Much volatility lies ahead I believe. Remember: you don't have to buy a whole bitcoin every time. You can buy fractions of a bitcoin. So you could buy R100 worth of bitcoin if you so wish.

STEP 5: The South African bitcoin exchange is at https://www.bitx.co/ Sign up and follow instructions.

Done.

PS: Apart from the bitcoin wallet that you automatically get on BitX, you can also download other wallets from other providers. I believe it is prudent to spread your bitcoins between wallets, so that all your eggs are not in one basket. I have three wallets - one on the BitX exchange, and two wallets with Blockchain Wallet

PPS: I personally do not attempt to day-trade on bitcoin. I am a buy and hold bitcoiner, given the view I have taken that the bitcoin price will be much much higher five years from now.

PPPS: high volatility = high risk/reward. Bitcoin crashes and bubbles WILL happen from time to time. When the bitcoin price takes a dive, I buy. But that's just me. Cum est
sanguis in plateis, emite!